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A collection of analysts and traders appeared on CNBC’s Fast Money program to discuss the recent impact of Facebook’s libra on the cryptocurrency market.
Analysts Weigh In
On July 10, Federal Reserve Chairman Jerome Powell told the U.S. Congress that Facebook’s libra raised “many serious concerns,” in regards to privacy, money laundering and consumer protection. Since being officially announced in mid-June, Facebook’s cryptocurrency has caused a regulatory firestorm, with both proponents and detractors of crypto wondering how it will affect the industry .
A group of CNBC analysts weighed in on the debate, giving their opinion of libra’s future impact on bitcoin.
When asked about bitcoin’s current price situation, analyst Guy Adami said the “chart is fine,” and that investors should be happy with the slower price progression and regular corrections. Adami explained that shooting to another all-time high would be unhealthy for bitcoin and that incremental price increases are preferential.
Adami also gave his opinion on Facebook’s stock price boost throughout 2019, which he believes will head to an all-time high thanks to investor excitement over the lbra coin.
Trader Tim Seymour argued that Facebook’s valuation was not due to libra coin and that the digital currency was merely drawing attention from other security concerns over the social media giant.
He called Facebook “too big to fail” in certain areas, and that the platform was sitting comfortably on its throne of market dominance,
“I think ultimately, as we’ve talked about on this desk, with Facebook wone for the benefits they have is more regulations are going to make it a lot harder for anyone to get closer to their critical mass and footprint.”
Winklevoss Twins Talk Libra
Speaking with the Fast Money crew, CNBC’s Seema Mody gave an update on her recent interview with the Winklevoss twins, who explained that libra was “very positive for crypto.” The Winkelvoss’ highlighted the importance of a household name like Facebook embracing cryptocurrencies, with the ultimate effect of “demystifying” crypto-assets to a mainstream audience.
The twins, despite their contentious history with Facebook CEO’s Mark Zuckerberg, advocated for the libra team to take a proactive approach in handling regulatory hurdles. Speaking from their experience in establishing the crypto exchange Gemini, the twins championed a “front door” approach to regulatory organizations who rely upon education from the crypto community.
The twins concluded by stating the healthiest markets in the world are all regulated, and that they are fans of “thoughtful” regulation.